03-17-2025, 01:03 PM
(03-17-2025, 12:57 PM)Luvnit2 Wrote: Actually they coud just add a couple of voids years to lower Joe's cap number. No cash needed. They could also add void years to both Tee and Chase though to lower theircap hits not just in 2025, but also 2026.
That's not how that works. Void years only push back the accounting via spreading signing/restructure bonuses (which are paid immediately) over multiple fake years, it doesn't push back the actual cash.
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Example: You have Burrow on a 1yr/$42m (all base salary) deal in 2025... you want to create space so you restructure and turn $40m of that $42m into a signing bonus that you equally prorate over 2025 and a void year you added during the restructure for 2026. You have now lowered his 2025 cap hit to $22m (the $2m base salary left plus the $20m signing bonus) and in 2026 he won't be under contract because the year will void but you'll still take a $20m cap hit.
You still have to actually pay him that $40m right then and there in advance in 2025, it's only delayed in accounting terms.
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